Ray and Maria Gomez have been married for 3 years. Ray is a propane salesman for Palm Oil Corporation and Maria works as a city clerk for the City of McAllen. Ray's birthdate is February 21, 1992 and Maria's is December 30, 1994. Ray and Maria each received a W-2 from their respective employers (see separate tab).Ray and Maria have interest income from McAllen State Bank which is reported a 1099-INT form (see separate tab). In addition, they own U.S. Savings bonds (Series EE). The bonds had a value of $10,000 on January 1, 2020, and their value is $10,700 on December 31, 2020. They have not made an election with respect to these bonds.Ray has an ex-wife named Judy Gomez. Pursuant to their January 27, 2015 (pre-2019) divorce decree, Ray pays her $450 per month in alimony. All payments were made on time in 2020. Judy's Social Security number is 566-74-8765.During 2020, Ray was in the hospital for a successful operation. His health insurance company reimbursed Ray $4,732 for all of his hospital and doctor bills.In June 2020, Maria's father died. Under a life insurance policy owned and paid for by her father, Maria was paid death benefits of $25,000. She used $7,800 to cover a portion of the funeral costs for her father.Maria bought a Texas lottery ticket on impulse during 2020. Her ticket was lucky and she won $4,432. The winning amount was paid to Maria in November 2020, with no income tax withheld.Palm Oil Corporation provides Ray with a company car to drive while he is working. The Corporation spent $5,000 to maintain this vehicle during 2020. Ray never uses the car for personal purposes.Ray and Maria received a $2,400 EIP in 2020.Required:Complete the Gomez's federal tax return for 2020 on Form 1040 and Schedule 1. The Gomez's had health care coverage the entire year. They do not want to make a contribution to the presidential election campaign. Make any other realistic assumptions about any missing data. If an amount box does not require an entry or the amount is zero, enter "0". Enter amounts as positive numbers. If required, round amounts to the nearest dollar. Ray and Maria's earnings are reported on the following Forms W-2: a Employee's social security number469-21-5523OMB No. 1545-0008Safe, accurate,FAST! UseIRS e ~ fileVisit the IRS website atwww.irs.gov/efilebEmployer identification number (EIN)21-76543211Wages, tips, other compensation30,660.002Federal income tax withheld2,996.00cEmployer's name, address, and ZIP codePalm Oil Corporation11134 E. Pecan Blvd.McAllen, TX 785013Social security wages30,660.004Social security tax withheld1,900.925Medicare wages and tips30,660.006Medicare tax withheld444.577Social security tips8Allocated tipsdControl number9 10Dependent care benefitseEmployee's first name and initialRay Gomez1610 Quince AvenueMcAllen, TX 78701Last nameSuff.11Nonqualified plans12aSee instructions for box 12Code 13Statutory employeeRetirement planThird-party sick pay◻◻◻12b Code 14Other12c Code 12d Code fEmployee's address and ZIP code 15 StateTXEmployer's state ID number16State wages, tips, etc.17State income tax18Local wages, tips, etc.19Local income tax20Locality name Form W-2Wage and TaxStatement2020Department of the Treasury—Internal Revenue Service Copy B—To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. a Employee's social security number444-65-9912OMB No. 1545-0008Safe, accurate,FAST! UseIRS e ~ fileVisit the IRS website atwww.irs.gov/efilebEmployer identification number (EIN)23-44443211Wages, tips, other compensation32,500.002Federal income tax withheld2,654.00cEmployer's name, address, and ZIP codeCity of McAllen1300 W. Houston Ave.McAllen, TX 785013Social security wages32,500.004Social security tax withheld2,015.005Medicare wages and tips32,500.006Medicare tax withheld471.257Social security tips8Allocated tipsdControl number9 10Dependent care benefitseEmployee's first name and initialMaria Gomez1610 Quince Ave.McAllen, TX 78701Last nameSuff.11Nonqualified plans12aSee instructions for box 12Code 13Statutory employeeRetirement planThird-party sick pay◻◻◻12b Code 14Other12c Code 12d Code fEmployee's address and ZIP code 15 StateTXEmployer's state ID number16State wages, tips, etc.17State income tax18Local wages, tips, etc.19Local income tax20Locality name Form W-2Wage and TaxStatement2020Department of the Treasury—Internal Revenue Service Copy B—To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. XForm 1040 CompleteRay and Maria have interest income as reported on the following 1099-INT: Complete the Gomez's Form 1040. Complete the Gomez's Schedule 1

Ray and Maria Gomez are married for three years. Rayisa fuel salesperson for oil Corporation and…

Answered: Ray and Maria Gomez

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ray and Maria Gomez have been married for 3 years. Ray is a propane salesman for Palm Oil Corporation and Maria works as a city clerk for the City of McAllen. Ray's birthdate is February 21, 1992 and Maria's is December 30, 1994. Ray and Maria each received a W-2 from their respective employers (see separate tab).

Ray and Maria have interest income from McAllen State Bank which is reported a 1099-INT form (see separate tab). In addition, they own U.S. Savings bonds (Series EE). The bonds had a value of $10,000 on January 1, 2020, and their value is $10,700 on December 31, 2020. They have not made an election with respect to these bonds.

Ray has an ex-wife named Judy Gomez. Pursuant to their January 27, 2015 (pre-2019) divorce decree, Ray pays her $450 per month in alimony. All payments were made on time in 2020. Judy's Social Security number is 566-74-8765.

During 2020, Ray was in the hospital for a successful operation. His health insurance company reimbursed Ray $4,732 for all of his hospital and doctor bills.

In June 2020, Maria's father died. Under a life insurance policy owned and paid for by her father, Maria was paid death benefits of $25,000. She used $7,800 to cover a portion of the funeral costs for her father.

Maria bought a Texas lottery ticket on impulse during 2020. Her ticket was lucky and she won $4,432. The winning amount was paid to Maria in November 2020, with no income tax withheld.

Palm Oil Corporation provides Ray with a company car to drive while he is working. The Corporation spent $5,000 to maintain this vehicle during 2020. Ray never uses the car for personal purposes.

Ray and Maria received a $2,400 EIP in 2020.

Required:
Complete the Gomez's federal tax return for 2020 on Form 1040 and Schedule 1. The Gomez's had health care coverage the entire year. They do not want to make a contribution to the presidential election campaign. Make any other realistic assumptions about any missing data. If an amount box does not require an entry or the amount is zero, enter "0". Enter amounts as positive numbers. If required, round amounts to the nearest dollar.

Ray and Maria's earnings are reported on the following Forms W-2:

a Employee's social security number
469-21-5523

OMB No. 1545-0008

Safe, accurate,
FAST! Use

^IRS e ~ file

Visit the IRS website at
www.irs.gov/efile

Employer identification number (EIN)
21-7654321

Wages, tips, other compensation
30,660.00

Federal income tax withheld
2,996.00

Employer's name, address, and ZIP code
Palm Oil Corporation
11134 E. Pecan Blvd.
McAllen, TX 78501

Social security wages
30,660.00

Social security tax withheld
1,900.92

Medicare wages and tips
30,660.00

Medicare tax withheld
444.57

Social security tips

Allocated tips

Control number

Dependent care benefits

Employee's first name and initial
Ray Gomez
1610 Quince Avenue
McAllen, TX 78701

Last name

Suff.

Nonqualified plans

12a

See instructions for box 12

C
o
d
e

Statutory employee	Retirement plan	Third-party sick pay
◻	◻	◻

12b

C
o
d
e

Other

12c

C
o
d
e

12d

C
o
d
e

Employee's address and ZIP code

15 State TX	Employer's state ID number	16	State wages, tips, etc.	17	State income tax	18	Local wages, tips, etc.	19	Local income tax	20	Locality name

Form W-2

Wage and Tax
Statement

2020

Department of the Treasury—Internal Revenue Service

Copy B—To Be Filed With Employee's FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

a Employee's social security number
444-65-9912

OMB No. 1545-0008

Safe, accurate,
FAST! Use

^IRS e ~ file

Visit the IRS website at
www.irs.gov/efile

Employer identification number (EIN)
23-4444321

Wages, tips, other compensation
32,500.00

Federal income tax withheld
2,654.00

Employer's name, address, and ZIP code
City of McAllen
1300 W. Houston Ave.
McAllen, TX 78501

Social security wages
32,500.00

Social security tax withheld
2,015.00

Medicare wages and tips
32,500.00

Medicare tax withheld
471.25

Social security tips

Allocated tips

Control number

Dependent care benefits

Employee's first name and initial
Maria Gomez
1610 Quince Ave.
McAllen, TX 78701

Last name

Suff.

Nonqualified plans

12a

See instructions for box 12

C
o
d
e

Statutory employee	Retirement plan	Third-party sick pay
◻	◻	◻

12b

C
o
d
e

Other

12c

C
o
d
e

12d

C
o
d
e

Employee's address and ZIP code

15 State TX	Employer's state ID number	16	State wages, tips, etc.	17	State income tax	18	Local wages, tips, etc.	19	Local income tax	20	Locality name

Form W-2

Wage and Tax
Statement

2020

Department of the Treasury—Internal Revenue Service

Copy B—To Be Filed With Employee's FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Form 1040

Complete

Ray and Maria have interest income as reported on the following 1099-INT:

Complete the Gomez's Form 1040.

Complete the Gomez's Schedule 1

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